Question 1

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing.
product bundle
optional-product
captive-product
by-product
skimming

Accepted Answer

The answer of Companies involved in deciding which items to...

Question 2

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
price skimming
trial pricing
value pricing
market-penetration pricing
prestige pricing

Accepted Answer

The answer of A firm is using ________ when it...

Question 3

Which of the following conditions would be least likely to support market-penetration pricing?
The market must be highly price sensitive.
Production and distribution costs must fall as sales volume increases.
The product's quality and image must support the price.
The low price must help keep out the competition.
A low price will produce more market growth.

Accepted Answer

The answer of Which of the following conditions would be...

Question 4

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________.
market-level pricing
market-competitive pricing
market-skimming pricing
market-price lining
market-price filling

Accepted Answer

The answer of Companies facing the challenge of setting prices...

Question 5

When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy.
by-product
optional-product
captive-product
skimming
penetration

Accepted Answer

The answer of When amusement parks and movie theaters charge...

Question 6

By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.
segmented pricing
variable pricing
flexible pricing
cost-plus pricing
reference pricing

Accepted Answer

The answer of By definition, this type of pricing is...

Question 7

With product bundle pricing, sellers can combine several products and offer the bundle ________.
as a working unit
at a reduced price
as a complete self-service package
as a reward to loyal customers
as segmented pricing

Accepted Answer

The answer of With product bundle pricing, sellers can combine...

Question 8

A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles.
pricing by-product
pricing structure
pricing loop
pricing cycle
pricing bundle

Accepted Answer

The answer of A company sets not a single price,...

Question 9

Which of the following is not a price adjustment strategy?
segmented pricing
customer value-based pricing
promotional pricing
discount and allowance pricing
dynamic pricing

Accepted Answer

The answer of Which of the following is not a...

Question 10

When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line.
non-price competition
value differences
quantity levels
images
strategies

Accepted Answer

The answer of When using price steps, the seller must...

Question 11

Consumers usually perceive higher-priced products as ________.
not within reach of most people
having a higher quality
having high profit margins
popular brands
being in the introductory stage of the product life cycle

Accepted Answer

The answer of Consumers usually perceive higher-priced products as ________.
not...

Question 12

Hotline Long Distance Service uses captive-product pricing for its phone call charges.Because this is a service, the price is broken into a fixed rate plus a per-call ________.
fixed rate usage
variable usage rate
standard usage rate
market usage rate
fixed fee

Accepted Answer

The answer of Hotline Long Distance Service uses captive-product pricing...

Question 13

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________.
trade discount
functional discount
allowance
promotional allowance
trade credit

Accepted Answer

The answer of When General Motors provides payments or price...

Question 14

It is most typical for producers who use captive-product pricing to set the price of the main product ________ and set ________ on the supplies necessary to use the product.
low; low markups
high; low markups
low; high markups
high; high markups
moderately; moderate markups

Accepted Answer

The answer of It is most typical for producers who...

Question 15

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share.
Market-skimming
Market-penetration
Below-market
Value-based
Leader

Accepted Answer

The answer of ________ pricing is the approach of setting...

Question 16

A quantity discount is a price reduction to buyers who purchase ________.
frequently
large volumes
close outs
inferior merchandise
superior merchandise

Accepted Answer

The answer of A quantity discount is a price reduction...

Question 17

The New Age Gallery has different admission prices for students, adults, and seniors.All three groups are entitled to the same services.This form of pricing is called ________.
time-based pricing
location pricing
customer-segment pricing
revenue management pricing
generational pricing

Accepted Answer

The answer of The New Age Gallery has different admission...

Question 18

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing.
revenue management
penetration
skimming
time-based
value-added

Accepted Answer

The answer of When a firm varies its price by...

Question 19

Which of the following would likely be ineffective in supporting a market-skimming policy for a new product?
The product's quality and image must support its higher price.
Enough buyers must want the products at that price.
Competitors are not able to undercut the high price.
Competitors can enter the market easily.
The cost of producing a smaller volume is not so high that it negates the advantage of charging more per unit.

Accepted Answer

The answer of Which of the following would likely be...

Question 20

A challenge for management in product line pricing is to decide on the price steps between the ________.
various products in a line
product mixes
product groupings
product lines
various target markets

Accepted Answer

The answer of A challenge for management in product line...

Quiz 10: Pricing: Understanding and Capturing Customer Value

Companies involved in deciding which items to include in the base price and which to offer as options are engaged in ________ pricing. product bundle optional-product captive-product by-product skimming

A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future. price skimming trial pricing value pricing market-penetration pricing prestige pricing

Companies facing the challenge of setting prices for the first time can choose between two broad strategies: market-penetration pricing and ________. market-level pricing market-competitive pricing market-skimming pricing market-price lining market-price filling

When amusement parks and movie theaters charge admission plus fees for food and other attractions, they are following a(n) ________ pricing strategy. by-product optional-product captive-product skimming penetration

By definition, this type of pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. segmented pricing variable pricing flexible pricing cost-plus pricing reference pricing

With product bundle pricing, sellers can combine several products and offer the bundle ________. as a working unit at a reduced price as a complete self-service package as a reward to loyal customers as segmented pricing

A company sets not a single price, but rather a ________ that covers different items in its line that change over time as products move through their life cycles. pricing by-product pricing structure pricing loop pricing cycle pricing bundle

Which of the following is not a price adjustment strategy? segmented pricing customer value-based pricing promotional pricing discount and allowance pricing dynamic pricing

When using price steps, the seller must establish perceived ________ that support the price differences among the products in the line. non-price competition value differences quantity levels images strategies

Consumers usually perceive higher-priced products as ________. not within reach of most people having a higher quality having high profit margins popular brands being in the introductory stage of the product life cycle

Hotline Long Distance Service uses captive-product pricing for its phone call charges.Because this is a service, the price is broken into a fixed rate plus a per-call ________. fixed rate usage variable usage rate standard usage rate market usage rate fixed fee

When General Motors provides payments or price reductions to its new car dealers as rewards for participating in advertising and sales support programs, it is granting a(n) ________. trade discount functional discount allowance promotional allowance trade credit

It is most typical for producers who use captive-product pricing to set the price of the main product and set on the supplies necessary to use the product. low; low markups high; low markups low; high markups high; high markups moderately; moderate markups

________ pricing is the approach of setting a low initial price in order to attract a large number of buyers quickly and win a large market share. Market-skimming Market-penetration Below-market Value-based Leader

A quantity discount is a price reduction to buyers who purchase ________. frequently large volumes close outs inferior merchandise superior merchandise

The New Age Gallery has different admission prices for students, adults, and seniors.All three groups are entitled to the same services.This form of pricing is called ________. time-based pricing location pricing customer-segment pricing revenue management pricing generational pricing

When a firm varies its price by the season, month, day, or even hour, it is using ________ pricing. revenue management penetration skimming time-based value-added

A challenge for management in product line pricing is to decide on the price steps between the ________. various products in a line product mixes product groupings product lines various target markets